DC’s Olsson’s Books Closes

by Calvin Reid -- Publishers Weekly, 9/30/2008 3:25:00 PM

Olsson’s Books and Records has filed for liquidation under the chapter 7 bankruptcy laws and has closed its doors after 36 years selling books in the Washington D.C. area. All five of its current Washington D.C.-area stores have been closed. The firm applied for Chapter 11 bankruptcy in July with plans to reorganize and cut costs by closing some of its stores. But a combination of low sales and rising rent was more than the DC metro-area indie chain could overcome. 

In a prepared statement Olsson’s general manager Stephen Wallace-Haines blamed “stagnant sales, low cash reserves, and an inability to renegotiate current leases, along with a continuing weak retail economy and plummeting music sales.” Despite attempts to reorganize, Wallace-Haines said, “We were losing money just by staying open." In its bankruptcy filing, Olsson's reported that it lost $54,558 in August. At closing its had 46 employees. The bankruptcy began when Random House, Penguin and Hachette filed a petition in June asking a court to put the chain into Chapter 7.

John Olsson, the store’s principal owner, said “although it is certainly a sad day for us, I can rejoice in all the great memories of my life in retail in Washington. My love and gratitude to all my employees, and special thanks to all those thousands of loyal customers."”